Africa Oil Corp

[sumisu]

Raytec Closes First Tranche of Institutional Financing

Friday April 11, 9:47 am ET

http://biz.yahoo.com/iw/080411/0385900.html

Provides Corporate Overview And Update

VANCOUVER, BC--(MARKET WIRE)--Apr 11, 2008 -- Raytec Metals Corp. (the "Company") (CDNX:RAY.V - News) (Frankfurt:XZT.F - News) (Other OTC:RAYMF.PK - News) is pleased to announce receipt of regulatory approval, and subsequent closing of the first tranche of the previously announced private placement. In the first tranche, closed on March 25, 2008, the Company received gross proceeds of $3,883,000 in consideration of the issuance of 8,628,887 units at a price of $0.45 per unit.

Each unit consists of one common share and one-half of one non-transferable share purchase warrant. Each whole warrant is exercisable prior to March 25, 2010 to acquire an additional common share of the Company at a price of $0.75 per whole share purchase warrant.

The warrants contain a provision which provides that if after July 25, 2008, until the expiry date of the warrants, the closing price of the Company's shares exceeds $1.25 for 10 consecutive trading days, the Company may accelerate the expiry date of the warrants to the date that is 30 days after the day the notice of the new expiry date is provided to the holders of the warrants.

The Company paid/issued the following finders' fees in respect of the placement:

Integral Wealth Securities Limited received a cash payment of $182,999.95 and a share purchase warrant authorizing it to purchase up to 406,667 common shares of the Company at a price of $0.45 per share until March 25, 2010.

Canaccord Capital Corporation received a cash payment of $27,000 and a share purchase warrant authorizing it to purchase up to 60,000 common shares of the Company at a price of $0.45 per share until March 25, 2010.

Lockwood Financial Ltd. received a cash payment of $18,900 and a share purchase warrant authorizing it to purchase up to 42,000 common shares of the Company at a price of $0.45 per share until March 25, 2010.

All securities issued under the placement are subject to hold periods expiring on July 26, 2008.

Corporate Overview and Update

Mr. Brian Thurston, President of the Company, provides the following corporate overview and update on behalf of the Company's Board of Directors:

"We are very pleased to have completed the first tranche of this private placement and anticipate closing the second tranche shortly. As is evident from all our recent news releases, we have been extremely active since the board determined to redirect the Company's focus to mineral exploration. Since we have now essentially completed the reorganization of the Company, we thought it is an appropriate time to provide shareholders and investors with an overview and update of our activities."

On April 20, 2007, the Company announced the acquisition of 100% of the issued and outstanding shares of Aurex Copper Mines Corp. ("Aurex"), a private British Columbia company that has an option to acquire 17 Uranium properties in the eastern Athabasca basin of Saskatchewan. The properties obtained through the acquisition of Aurex total 50,159 hectares located along the southern margin of the Athabasca Basin.

The acquisition constituted a Change of Business ("COB") for the Company under the policies of the TSX Venture Exchange (the "Exchange"), resulting in the Company becoming a resource issuer. The Company requested that trading in its shares on the Exchange be halted on April 20, 2007 in accordance with the Exchange's policies, order to seek approval for the COB.

In connection with the COB, the Company also announced a brokered private placement of up to 2,727,273 units at a price of $0.55 per unit for gross proceeds of $1,500,000, and a non-brokered private placement of up to 1,818,182 units at a price of $0.55 per unit for gross proceeds of $1,000,000. The units for each financing consisted of one common share of the Company and one warrant to purchase one additional share of the Company at a price of $0.85 per share for a period of two years from the date of closing. The Company announced that proceeds would be used to further exploration work on the Saskatchewan Uranium properties in accordance with recommendations to be contained in the National Instrument 43-101 report on the properties and for general working capital. The Company contracted Mr. Andrew J. Gracie, Ph.D., P.Eng., to write the report, which was completed on July 17, 2007 and is posted and available for viewing on SEDAR.

The Company also completed a prospectus level information circular to seek shareholder approval of the COB, which was also filed on SEDAR on July 24, 2007. The Company then held its shareholder meeting on July 31, 2007, and received overwhelming support for the COB to a resource issuer. The Company then sought and received the Exchange's conditional acceptance to the COB on August 10, 2007. The acceptance was subject to the Company completing the required financings to fund the COB.

Unfortunately, by the time the Company was ready to proceed with the financings, the market appetite for Uranium focused issuers had waned considerably. The Company was able to complete the non brokered portion of the previously announced private placement in the reduced amount of $767,050 on September 17, 2007, and then was able to arrange a flow through private placement with the MineralFields Group for $1,000,000, which was announced on October 17, 2007. On November 7, 2007 the Company announced a further non brokered private placement of $300,000.

On November 14, 2007 the Company closed its brokered private placement with Canaccord Capital Corp. in the amount of $500,000 and on November 15, 2007 closed the MineralFields flow through placement for $1,000,000 and the non brokered flow through placement for $300,000.

With its private placements closed, the Company met the minimum financing requirements set out by the Exchange and on November 16, 2007, the Exchange issued its final acceptance notice and the Company closed the COB by issuing 3,962,801 shares to the shareholders of Aurex and 1,500,000 shares to North-Sask Ventures Ltd. The Company's shares were reinstated for trading on November 19, 2007.

Nevertheless, through the COB process, management reached the conclusion that diversification into additional mineral properties hosting other than Uranium would be beneficial and allow the Company to realize shareholder value by not succumbing to single commodity price fluctuations. In particular, on a going forward basis, the Company's Board of Directors and management determined that it was prudent to reduce the Company's risk profile considerably by diversifying the Company's asset base into other metals and eventually into other countries.

At around the time the Company was closing the COB, it was introduced to the President of Triex Minerals Corporation ("Triex"). Triex was one of the most active juniors in the Uranium space and enquired whether the Company would be interested in joint venturing certain of the Athabasca claims. Management recognized the advantage of a joint venture with an experienced and strong junior Uranium explorer and accordingly the Company entered into an option agreement with Triex on November 20, 2007 giving them the right to earn up to a 70% interest in two properties totaling 7 of Raytec's 17 Athabasca Uranium claims. The decision to enter into the agreement was made by the Company in light of the opportunity to see development of the property by a company that possessed a strong, experienced technical team, and were financially capable of funding long-term development of the property.

In accordance with the mandate provided by the Board of Directors, management had been actively searching for additional projects of merit, and the Avis Lake area of Ontario had been suggested as a good location to acquire iron ore projects. On November 29, 2007, the Company signed an agreement to acquire a 100% interest in the El Sol Historic Iron Ore Project, located in the Red Lake Mining District of Ontario, Canada.

The Company recognized the value of this asset after performing extensive research into the markets for both iron ore and titanium. As a result, the property was acquired to enhance and diversify the commodity base for Raytec.

On December 4, 2007, the Company announced that it had entered into an agreement to option the remaining 10 Uranium properties in the Athabasca Basin held by the Company to Solitaire Minerals Corp.

Expanding on the diversification into iron ore to complement the Company's retained interests in Uranium properties, the Company announced on January 15, 2008 an agreement to purchase a 100% interest in the Gunflint property, consists of 16 claim units totaling approximately 640 acres, located within the Thunder Bay Mining District, Ontario.

On January 25, 2008 the Company furthered its acquisition of iron ore properties with the acquisition of the Brulé property, located in Adrian and Conmee Townships, within the Thunder Bay Mining District, Ontario consisting of 44 claim units totaling approximately 1,760 acres in one grouping, and 80 claim units totaling approximately 3,200 acres in a second grouping.

In January 2008, the Company was presented with an opportunity to acquire a highly prospective Potash property located within the Potash belt of south central Saskatchewan. In following with the Company's mandate to diversify into more than one mineral based commodity, and following as extensive research into the market conditions for Potash, a decision was made to acquire the offered Exploration Permits. As a result, on January 29, 2008 the Company announced the signing of an agreement to purchase a 100% interest in Exploration Permit Application KP441, covering an area of approximately 88,320 acres in central Saskatchewan. The Company received Exchange acceptance to this acquisition on March 19, 2007.

On February 7, 2008 the Company announced that it had increased its Potash holdings through staking of additional ground adjoining Exploration Permit Application Area ("EPAA") KP441. The newly staked area included EPAA-KP455 which consisted of 65,280 acres, EPAA-KP466 which consisted of 33,600 acres, and EPAA-KP467 which consisted of 11,520 acres. The Company now has a total of 198,720 acres of contiguous ground within the extensive Middle Devonian Prairie Evaporite formation of south central Saskatchewan under Exploration Permit Application.

On February 11, 2008 the Company announced a further increase in Potash properties with the signing of an agreement to purchase a 100% interest in EPAA-KP452, covering an area of approximately 92,160 acres in south central Saskatchewan. The Company now has a total of 290,880 acres of prospective potash ground under permit application within the extensive Middle Devonian Prairie Evaporite formation of south central Saskatchewan. The Company received Exchange acceptance to this acquisition on April 7, 2008

As a result of the Company's strategic plan and based on its ability to quickly execute on that plan, the Company engendered strong interest in further funding from the financial community. Accordingly the Company announced on February 13, 2008 that, subject to regulatory approval, it has arranged a non-brokered private placement of 8,000,000 units at a price of $0.45 per unit for gross proceeds of $3,600,000.

Due to strong demand for the financing units, on March 20, 2008 the Company agreed to increase the financing to a total of up to 9,333,333 units at a price of $0.45 per unit for gross proceeds of $4,200,000.

The Company is pleased to have received Exchange approval for the financing resulting in today's announcement of the first tranche closing. It is anticipated the second (and final) tranche will close within the next few days.

As the Company has completed its transformation into a resource issuer, it will proceed with the distribution of shares it holds in the capital of Avantec Technologies Inc. to shareholders of record on the date the distribution was originally announced.

On behalf of the Board,
RAYTEC METALS CORP.

"Brian Thurston"

Brian Thurston, President

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Contact:
Brian Thurston
President
[phone]

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Source: Raytec Development Corp.